Congress Takes Steps to Advance Tax Reform

On June 20, Speaker Paul Ryan (R-Wis.) gave a speech to the National Association of Manufacturers in which he expressed continued confidence that Congress can deliver a set of tax policy changes this year. While Speaker Ryan did not provide new details on the House’s tax reform proposal, he emphasized that they would prioritize permanent rather than temporary changes, and comprehensive reform for both individuals and businesses. He also did not rule out the Trump Administration’s desired 15 percent top corporate tax rate, saying “it’s actually possible.” However, one of the major tenets of the House’s tax reform plan – the destination-based border adjustment tax – has failed to gain broad consensus, leaving those involved in tax negotiations to begin considering other ways to offset the revenue lost by lowering tax rates.

Senate Finance Committee Chairman Orrin Hatch (R-Utah) also recently launched the Senate’s formal process of soliciting ideas on tax reform, with an taxreform2017 by July 17. Enterprise encourages our partners to weigh in on the importance of tax provisions that promote affordable housing and community development, like the Low-Income Housing Tax Credit (Housing Credit) and New Markets Tax Credit (NMTC).